07 November 2011
in case of manufacturing company , if it pays service tax on frieght , whether it can avail CENVAT CREDIT or not ?(if freight is paid for material used in non manufacturing purposes, whats the case then ?
07 November 2011
You must have paid service tax on freight as a service receiver, therefore you can take credit of service tax paid on inward freight only and freight paid upto the place of removal. Further, credit can be utilized only if used for manufacturing purposes or for providing any output service.